Cyber technology startups in Estonia have reported 18% growth in their revenues in 2020 to a record €36.5mn, and they also attracted major investments last year.

Startup Estonia, a startup ecosystem development programme of the state-run Kredex foundation, says that there are 57 startups operating in the area of cyber technology in Estonia – the number has grown by seven year-on-year.

Companies that posted the largest revenues last year were provider of enterprise-level global messaging solutions Messente Communications with €9.3mn, data centre design and maintenance provider Hashcoins/Burfa with €7.5mn, and global identity verification provider Veriff with €6.4mn. Cyber technology startups accounted for 5% of the Estonian startup sector in 2020 and the share of said companies' tax payments accounted for over 8% of the sector's total contribution to the Estonian economy.

Startups operating in the area of cyber technology in Estonia employ altogether 478 people and paid altogether €8.1mn worth of labour taxes to the state – 47% more than a year earlier. Veriff with its 230 employees continues to be the biggest employer in the field.

Estonian cyber technology startups are exhibiting stable growth and attracting increasingly large investments, according to Startup Estonia. In 2020, the startups attracted altogether €29.4mn in investments – close to 7% of total investments in the Estonian startup sector.

The biggest investment at €14mn was attracted by Veriff, followed by cybersecurity training platform Rangeforce with an investment of €13.6mn.